The cryptocurrency sector is once again seeing bankers at the forefront of regulatory efforts, with a coalition of US bank trade associations requesting that the US Department of the Treasury extend the public consultation period for the implementation of the Guiding and Establishing National Innovation for US Stablecoins (GENIUS) Act. In a letter addressed to the Treasury Department and the Federal Deposit Insurance Corp, US bankers are seeking extended comment periods for three GENIUS Act rule proposals, with a minimum of 60 days after the Office of the Comptroller of the Currency (OCC) concludes its rulemaking process.
The OCC's stablecoin issuer policing rule is crucial to the outcome of other rules being developed by the Treasury's Office of Foreign Assets Control (OFAC) and the Financial Crimes Enforcement Network (FinCEN), as well as a related rulemaking at the FDIC. According to the bankers, all these efforts are directly contingent on the OCC's final framework, and collectively represent a highly complex and extensive body of regulatory work.
The banking organizations, including the American Bankers Association and the Bank Policy Institute, argue that having sufficient time to evaluate the proposed rules together and against the finalized OCC framework will enable them to provide more comprehensive and useful comments to the agencies. The GENIUS Act is scheduled to come into effect by 2027, although federal agencies often grant extensions for complex rules. The Treasury Department has not yet responded to a request for comment on the bank industry's request. Meanwhile, the same bankers are engaged in a debate with the crypto industry over stablecoin regulation, which has already delayed the Digital Asset Market Clarity Act for months and may jeopardize its chances of becoming law this year.